China Challenges EU Tariffs on Electric Vehicles

China has formally lodged a complaint with the World Trade Organization (WTO) against the European Union (EU) over newly imposed tariffs of up to 45% on Chinese electric vehicles (EVs). This action is intended to safeguard the development interests of China's EV industry, which China claims is being harmed by what it describes as 'trade protectionism' from the EU. The EU defends the tariffs as necessary measures resulting from investigations into Chinese government subsidies that allegedly create unfair pricing advantages. China's Ministry of Commerce argues that the EU's ruling lacks factual and legal basis, violating WTO rules, and urges the EU to correct its actions to maintain global EV supply chain stability. The ongoing dispute, characterized by mutual accusations, reflects broader tensions in trade relations between the two economic powers and highlights the complexities of balancing domestic industry protection with international trade obligations. As dialogues continue, the potential for escalating tit-for-tat measures remains high, impacting the €739 billion ($806 billion) trade relationship between the parties.